Provides gross income tax deduction for in vitro fertilization treatment expenses.

A127

ASSEMBLY, No. 127

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman AL BARLAS

District 40 (Bergen, Essex and Passaic)

Assemblyman WILLIAM B. SAMPSON, IV

District 31 (Hudson)

Assemblywoman VICTORIA A. FLYNN

District 13 (Monmouth)

Co-Sponsored by:

Assemblyman Scharfenberger

SYNOPSIS

���� Provides gross income tax deduction for in vitro
fertilization treatment expenses.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

providing a gross income tax deduction for in
vitro fertilization treatment expenses and supplementing chapter 3 of Title 54A
of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.�������� A resident
taxpayer shall be allowed to deduct from gross income 50 percent of the amount
paid by the taxpayer during the taxable year for costs related to in vitro
fertilization (IVF) treatment for the taxpayer or the taxpayer�s spouse or
domestic partner.� To be eligible for this deduction, the amounts paid shall
not be:

���� (1)� covered by health
insurance plans issued by hospital, medical, and health service corporations;
commercial group insurers; health maintenance organizations; the State Health
Benefits Program, or the School Employees Health Benefits Plan; and

���� (2)� otherwise deductible from
the taxpayer�s gross income pursuant to N.J.S.54A:3-3.

���� b.��� For the purposes of this
section, �in vitro fertilization� means all medical and laboratory procedures
that are required to effectuate the formation of a human embryo outside the
human body.

���� 2.��� This act shall take
effect immediately and shall apply to taxable years beginning on or after the
January 1 next following the date of enactment.

STATEMENT

���� The bill provides taxpayers
who are New Jersey residents the ability to claim a gross income tax deduction
related to in vitro fertilization (IVF) procedures for the treatment of
infertility.

���� Specifically, this bill allows
a taxpayer to deduct from gross income 50 percent of the amount paid by the
taxpayer during the taxable year for costs related to IVF treatment for the
taxpayer or the taxpayer�s spouse or domestic partner, provided that these
costs are not reimbursed by certain health insurance plans, and are not
otherwise deducted from the taxpayer�s gross income as an allowable medical
expense.

���� Currently, a resident who
files a New Jersey Gross Income Tax return can deduct from gross income certain
unreimbursed medical expenses paid during the tax year for the taxpayer, the
taxpayer�s spouse or domestic partner, and any dependents claimed.� However, a
taxpayer can only deduct expenses that are more than two percent of the
taxpayer�s gross income.� In general, medical expenses allowed for federal tax
purposes are allowed for New Jersey tax purposes.� For federal individual
income tax purposes, the Internal Revenue Service allows a taxpayer to deduct
medical expenses for fertility enhancement procedures, such as IVF and
including temporary storage of eggs or sperm.

���� The gross income deduction in
this bill provides a benefit to taxpayers who are not covered by health
insurance plans issued by hospital, medical, and health service corporations;
commercial group insurers; health maintenance organizations; the State Health
Benefits Program; or the School Employees Health Benefits Plan.� It also
provides a benefit to taxpayers who have incurred out-of-pocket expenses
related to IVF treatment that are not eligible for deduction against their
taxable income for New Jersey Gross Income Tax purposes.